What would you do...
Text MATTHIJS VAN DER POL Photography SHELL | 3 minutes
Sometimes you win, sometimes you lose. Just when you think your finances are in good shape, an unexpected twist occurs. What do you do then?
That car you thought would last forever suddenly gives up the ghost. Or you get that one dreaded envelope from the tax man that always makes your heart beat just a little bit faster (and not from joy). Life is full of pleasant and not so pleasant surprises. But how do you make sure they don't wreak utter financial chaos?
The big surprises
To start with, it's all about a certain mindset. Simply allowing for the unforeseen will get you a long way. So plan ahead. Consider what could go wrong. Imagine that you don't have any income for a month or that your house has a roof leakage. Not the most comforting of thoughts, but it is a work in progress.
Prepare yourself for the unexpected
How to successfully guard against the unexpected. These 3 steps will lead to significant progress.
A personal emergency fund is the most obvious solution. By setting aside a small amount each month, you slowly but surely build up a buffer. Any little bit helps. That buffer is your financial safety net for unexpected expenses, such as a broken fridge or a sudden bike repair.
Do you have more streaming services than you have time to actually watch? When was the last time you took a close look at your energy contract? And what about those subscriptions (a 10-euros only public broadcaster membership!) that are quietly diminishing your account balance? Often, small adjustments can leave you with a little extra each month for your piggy bank.
Those may not always be thrilling, but they are quite useful nonetheless. A good household contents insurance or supplementary health insurance can prevent a lot of stress if something goes awry. The reverse is also true: some insurances are now superfluous. For example, taken out at a time when you were self-employed and needed a professional liability insurance, while you have now been employed for years.
The little '(mis)fortunes'
It's not always the major things that hit your finances. An impromptu gift, a dinner that gets a bit out of hand or an unscheduled weekend away- even minor expenses can unexpectedly put a strain on your budget.
Which is why it is smart to create not only an ‘emergency fund’ but also a ‘fun piggy bank': a small amount of money that you set aside for just such fun things. That way, you can continue to enjoy spontaneous moments without feeling guilty. After all, unexpected pleasure is also part of life.
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